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AROUND +/- questions...increased deadline.. you have 24-48 hours Question Which of the following would not be an appropriate cost-allocation base for the Personnel department costs? 1.Space occupied 2.Number of employees 3.Total payroll dollars in department using the equipment 4.Labor hours Question Which of the following would not be an appropriate cost-allocation base for allocating the cost of the corporate library in a consulting company with multiple divisions? 1.Number of employees employed in each division 2.Square footage occupied by each division 3.Cost of periodicals ordered by each division 4.Number of consultants employed in each division Question Mansfield River Corporation maintains computer equipment and provides services in all 50 states and in 20 countries. The Corporation has a fleet of 3 Corporate Jets and 2 Helicopters and employs 6 full time pilots who receive salary and benefits. The most appropriate way to allocate the total cost of the corporate jets, helicopters and pilots to individual user departments would be: 1.Number of trips taken by each department 2.Sales revenue generated by each department 3.Number of miles flown by each department 4.Number of employees in each department Question Which of the following is not a recognized method of allocating costs of service departments to user departments? 1.The direct method 2.The reciprocal method 3.The labor hours method 4.The step method Question There was an error in the text of this question, so everyone gets this one correct... but I had already activated the quiz when the error was discovered (thanks, Scott!) so Blackboard will not allow me to remove the question. To have this automatically scored as correct, select the letter for the answer of $187,000. 1.$187,000 2.$165,000 3.$171,583 4.$136,334 Question Which of the following statements regarding traditional cost accounting systems is False? 1.Products are often over or under costed in traditional cost accounting systems 2.Most traditional cost accounting systems do not trace individual costs to products 3.The advantage of traditional cost accounting systems is their simplicity 4.Traditional cost accounting systems can be sufficient to meet managers' cost information needs as long as the level of indirect costs is relatively high compared to the level of direct costs Question Costs associated with a special machine which sands the edges of all finished products would be an example of: 1.Unit-level activity 2.Batch-level activity 3.Customer-level activity 4.Product-level activity Question The review of each tax return by H & R Block would be an example of: 1.Unit-level activity 2.Facility-level activity 3.Product-level activity 4.Batch-level activity Question Ferguson Molding Company produces custom bottle caps and jar covers for large cosmetic companies. Each customer owns the custom-made molds that are used for the caps and jar covers, so caps are produced only to customer order. Each order requires the setting of molds in molding machines. Two full time mechanics, whose combined total annual salary and benefits are $160,000 per year, are employed setting up and breaking down the molding machines. An order consists of anywhere from 50,000 to 500,000 units. 80 orders were received during the year 2008 for individual custom production runs. The total number of units produced was 8 million. The cost of setting up the molding machines is an example of 1.Facility-level activity 2.Product-level activity 3.Batch-level activity 4.Customer-level activity Question Ferguson Molding Company produces custom bottle caps and jar covers for large cosmetic companies. Each customer owns the custom-made molds that are used for the caps and jar covers, so caps are produced only to customer order. Each order requires the setting of molds in molding machines. Two full time mechanics, whose combined total annual salary and benefits are $160,000 per year, are employed setting up and breaking down the molding machines. An order consists of anywhere from 50,000 to 500,000 units. 80 orders were received during the year 2008 for individual custom production runs. The total number of units produced was 8 million. The most appropriate cost driver base to allocate the salaries of the two mechanics under Activity-Based Costing would be: 1.The number of bottle caps and jar covers produced 2.The number of setups 3.The number of hours spent on each setup 4.The number of setup mechanics Question Salaries of the human resource staff responsible for hiring production personnel at Dell Computer would be an example of: 1.Unit-level activity 2.Facility-level activity 3.Batch-level activity 4.Product-level activity Question The purchase of chemicals to make a special batch of synthetic fiber would be an example of: 1.Customer-level resource 2.Facility-level resource 3.Product-level resource 4.Batch-level resource Question Richardson Motors uses ten units of part Number T305 each month in the production of large Diesel engines. The cost to manufacture one unit of T305 is presented below: Direct Material: $2000 Material Handling 20% of direct material cost: 400 Direct Labor: 16000 Manufacturing Overhead 150% of direct labor cost: 24000 Material handling, which is not included in manufacturing overhead, represents the direct variable costs of the receiving department that are applied to direct materials and purchased components on the basis of their costs. Richardson's annual manufacturing overhead budget is one-third variable and two-thirds fixed) Simpson Castings, one of Richardson's reliable vendors, has offered to supply T305 at a unit price of $30,000. Assume Richardson Motors is able to rent all idle capacity for $50,000 per month. If Richardson decides to purchase the ten units from Simpson Castings, Richardson's monthly Cost for T305 would: 1.Decrease $14,000 2.Increase $46,000 3.Decrease $34,000 4.Decrease $64,000 Question In differential analysis, changes in the cost of direct materials among alternatives is an example of 1.Price discrimination 2.Relevant data 3.Batch-level costs 4.None of the above Question TwoWheels (TW) manufactures hi-tech bicycles that sell for $600 each. They sell 1,000 bicycles per year. Fixed higher-level costs amount to $100,000. Break-even for TW is 300 bicycles. TW's margin safety is 1.$50,000 2.$180,000 3.$360,000 4.$420,000 Question Faulk Industries (FI) produces low cost digital cameras that sell for $100. FI requires a 25% return on sales. Currently feasible costs are $5,160,000 and a cost reduction of $660,000 is required to meet their target. FI assumes they will sell ____ cameras. 1.60,000 2.75,000 3.85,000 4.None of the above Question Juarez Healthcare Center receives reimbursement from C.H.E.A.T.E.M. insurance company. Juarez receives $20 per physical therapy session. Each session lasts 15 minutes. Because of a shortage of physical therapists, Juarez often finds it necessary to use a temporary service to provide therapists. Assume collections and other variable cost amount to $5 per visit and all other facility costs are fixed. What other qualitative factors should Juarez consider before using a temporary service? 1.What is the training of the employees? 2.Will Juarez builds relationships with the employees and has a potential source of new therapists? 3.Can Juarez uses the temporary service as a means to screen employees for a good match with the company? 4.All of the above Question Relevant costs exclude 1.Fixed costs 2.Costs that change from year to year 3.Costs that do not change based upon the alternative choices 4.All of the above Question When deciding on special order pricing, it is important to consider 1.Alternative capacity uses 2.The reaction of other customers 3.The potential for future sales 4.All of the above Question Abrams Corporation sells a product for $75 per unit. Its market share is 20 percent. The market share can be increased to 30 percent with a reduction in price to $63. The product is currently earning a profit of $12 per unit. The president of Abrams feels that the $12 profit per unit must be maintained. What is the target price per unit? 1.$53 2.$63 3.$65 4.$75 Question Use of negotiation to arrive at a transfer price can lead to divisiveness and competition between participating division managers. 1.True 2.False Question A particular manufacturing job is subject to an estimated 90% learning curve. The first unit required 40 labor hours to complete. What is the cumulative average time per unit after four units are completed? 1.32.0 hours 2.32.4 hours 3.36.0 hours 4.40.0 hours Question In which cost estimation method would costs most likely be broken into unit-level, batch-level, product-level and facility-level costs? 1.Scattergraph method 2.Account analysis method 3.Regression method 4.Engineering estimates method Question An amusement park estimates average costs per day. Which of the following is true? 1.Average cost per day considers the relationship between labor costs and other variables such as temperature 2.Average cost per day can be useful in estimating labor costs 3.Average cost per day would include a component of variable labor costs but not fixed labor cost 4.All of the above Question Which method of cost estimation does not use the company records as its primary source of cost-activity data? 1.Engineering estimates 2.Regression analysis 3.Account analysis 4.High-low method Question Which of the following companies would most likely use operation costing? 1.A piano manufacturer 2.A potato chip company 3.An oil company 4.A pocketbook manufacturer Question Oak Bluff Company incorrectly assigns a $50,000 overhead item to selling expense. Borden has more inventory at the end of the year than at the beginning of the year. The result of this error will be to: 1.Understate inventory and profit for the year 2.Have no effect on inventory and profit for the year 3.Overstate inventory and profit for the year 4.Understate inventory but have no effect on profit for the year Question ] Before prorating overhead, the current period overhead component of Cost of Goods Sold for Wilmington Company was $230,000, while the current period overhead component of the ending inventory was $80,000. Manufacturing overhead of $310,000 was applied during the period, whereas $296,000 was actually incurred. Wilmington has no Work-in-Process inventory at the end of the period. If the manufacturing overhead-variance is prorated between inventory and cost of goods sold, how much will be allocated to the ending inventory? (round to the nearest whole dollar) 1.$14,000 2.$ 0 3.$3,613 4.$2,868 Question Which of the following statements about activity-based flexible budgeting are true? 1.It uses several cost drivers 2.Costs that may appear fixed with respect to a single volume-based cost driver may be variable with respect to other appropriate cost drivers 3.It can also be used as the basis for a flexible budget for planning and cost management purposes 4.All of the above Question Which of the following is not important to managers when analyzing revenue sales-volume variance information? 1.The combination of the individual revenue sales-volume variances 2.The comparison of budgeted and actual total costs 3.The picture of the product-line portrayed by aggregate dollars 4.The production for the period Question XYZ Corp. produced 26,000 units of its only product. Machine hours per unit are 2.8. The budget planned for 23,000 units. What are the budgeted machine hours and the flexible-budget machine hours, respectively? 1.64,400 machine hours; 72,800 machine hours 2.72,800 machine hours; 64,400 machine hours 3.68,000 machine hours; 75,000 machine hours 4.75,000 machine hours; 68,000 machine hours Question Rhone Corporation produces a product called Sharone, which gives rise to a by-product called Erone. The only costs associated with Erone are additional processing costs of $2 for each unit. Rhone accounts for Erone's sales first by deducting its separable costs from its sales and then by deducting this net amount from the cost of goods sold of Sharone. This year, 4,800 units of Erone were produced. They were all sold for $10 each. Company operating expenses were $120,000 for the year. Sales revenue and cost of goods sold for Sharone were $800,000 and $400,000, respectively, for the year. (CPA adapted) If Rhone changes its method of accounting for Erone's sales, assuming that all of Erone's production is sold in the period that it is produced, what would be the effect on Rhone's overall profits? 1.Overall profit would increase 2.Overall profit would decrease 3.Overall profit would remain the same 4.Additional information is needed to determine the effect on overall profit Question The Stanford Corporation produces three outputs: A, B and C from one input. The net-realizable-value of A at the split-off point is $200,000. The net-realizable-value of B at the split-off point is $400,000 and the net-realizable- value of C at the split-off is $50,000. Final sales values are $400,000, $600,000 and $50,000 for A, B and C respectively. However, these prices are subject to erratic change. The additional processing costs for A, B and C are $100,000, $150,000 and $0 respectively. Stanford produces 120,000 units of A, 120,000 units of B and 60,000 units of C. The total costs incurred up to the split-off point are $300,000 What is the expected gross margin for Stanford Corporation? 1.$350,000 2.$450,000 3.$500,000 4.The expected gross margin cannot be determining without knowing how joint-costs will be allocated Question Which of the following statements regarding the physical-measures method of allocating joint-product costs is false? 1.Joint product costs are allocated proportional to economic values 2.It is based on the relative volume, weight, or other physical measure of each joint product at the split-off point 3.It is preferred when prices of output products are highly volatile or unpredictable 4.The total profit of the company will be the same regardless of which physical measure is used to allocated joint-product costs

Paper#7806 | Written in 18-Jul-2015

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